Melcliff Associates v City of Portland - Plaintiffs Motion for Summary Judgment

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  • 7/25/2019 Melcliff Associates v City of Portland - Plaintiffs Motion for Summary Judgment

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    IN

    THE CIRCUIT

    COURT

    FOR

    THE STATE

    OF

    OREGON

    FOR

    THE

    COLTNTY

    OF

    MULTNOMAH

    MELCLIFF

    ASSOCIATES,

    LLC,

    Plaintift

    V

    Case

    No.

    l5CV3

    1078

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    ORAL

    ARGUMENT

    REQUESTED

    CITY

    OF

    PORTLAND,

    an

    Oregon

    Municipal

    Corporation,

    Defendant.

    UTCR 5.050

    Pursuant

    to UTCR

    5.050,

    plaintiffs

    request

    oral

    argument

    on this

    motion.

    Plaintiffs

    estimate

    that

    60 minutes

    are

    required

    for

    oral

    argument.

    Official

    coufi reporting

    services

    are

    requested.

    MOTION

    Pursuant

    to

    ORCP

    47,

    plaintiffs respectfully

    move

    for summary

    judgment:

    (1)

    Declaring

    that

    Portland City

    Code

    Section

    30.01.085

    ( Ordinance )

    is

    invalid

    and

    unenforceable

    because

    it

    is

    preempted

    by

    ORS

    91

    '225;

    and

    (2)

    Permanently

    enjoining

    Defendant

    City

    of Portland

    ( City )

    from

    taking any

    action

    to

    enforce

    the

    Ordinance.

    This motion

    is supported

    by the

    following

    Memorandum

    of

    Points

    and

    Authorities,

    the

    Declaration

    of

    Timothy

    Gray

    in

    Support

    of

    Plaintiffls

    Motion

    for

    Summary

    Judgment

    and the

    records

    and

    files of this

    case

    Page

    1

    -

    PLAINTIFF'S

    MOTION

    FOR SUMMARY

    JUDGMENT

    DAVIS

    WRIGHT

    TREMAINE

    LI,P

    DWT

    28472413v3

    0105706-000001

    1300 S

    w

    Fifth Avenre,

    Suite

    2400

    Portland,

    Oregon

    97201-510

    (s03)

    24 I

    -2300

    rnain

    '

    (503)

    778-5299

    lax

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    POINTS

    AND

    AUTHORITIES

    I.

    INTRODUCTION

    This

    action challenges

    Portland

    City Code

    Section 30.01.085

    ( Ordinance ),

    which

    flouts

    an unambiguous

    and express

    preemption provision duly enacted

    by the

    Oregon

    legislature.

    The

    Ordinance

    is

    irreconcilable with

    the

    preemption

    statute

    and does

    not

    fall

    within

    any

    of the

    limited

    exceptions

    contained

    in

    that

    statute.

    Accordingly,

    this

    Courl

    should

    declare

    the

    Ordinance

    preempted

    and

    enjoin

    its enforcement.

    In

    1985,

    the

    Legislative

    Assembly

    enacted

    ORS 91

    .225,whichpreempted

    all

    local

    rent

    control

    enactments

    and reserved

    to the

    state

    the exclusive

    right to

    regulate

    residential

    rental

    prices.

    ORS

    91

    .225

    notonly

    ensures

    uniform

    statewide rent regulations,

    it

    prevents

    the

    imposition of

    general

    restrictions

    on housing

    rents

    ORS 91

    .225(1)'

    Despite

    thirty

    years

    of exclusive

    state

    control

    of

    rent

    regulation,

    the City

    of

    Portland

    has

    adopted

    an Ordinance

    attempting

    to do

    just

    what

    ORS

    9l

    .225

    proscribes-impose

    restrictions

    on

    rent

    price

    adjustments.

    The Ordinance

    prohibits residential

    property

    lessors

    from adjusting

    rent

    prices

    more than

    five

    percent over a 12-month

    period

    without

    providing a full

    90

    days'

    notice'

    By

    tripling

    the

    notice

    period

    specified

    by

    ORS 90.220,

    the

    Ordinance

    conflicts

    with Oregon

    state

    law and

    constricts

    property

    owners'

    ability

    to

    respond

    efficiently

    to changes

    in

    the

    rental

    market.

    For the duration

    of this

    extended

    notice

    period,

    the

    Ordinance

    controls the

    rent

    that

    may

    be

    charged

    for

    the

    rental

    of

    any

    dwelling,

    in violation

    of

    ORS

    91.225.

    Therefore,

    the Ordinance

    is

    invalid and

    unenforceable.

    U.

    BACKGROUND

    A.

    State

    law

    prohibits

    local

    regulation

    of

    residential

    property rental

    prices.

    Responding

    to decades

    of

    research

    showing

    the devastating

    consequences

    of

    rent

    control

    policies,

    Oregon's

    Legislative

    Assembly

    passed

    emergency

    legislation

    in

    1985 that

    preempted

    local

    rent regulation.

    In its entirety,

    the

    resulting

    statute

    now

    provides:

    il

    Page2

    - PLAINTIFF'S

    MOTION

    FOR SUMMARY

    JUDGMENT

    DAVIS WRIGHT

    TREMAINE LLP

    1300

    S.W.

    Fifth

    Avenue, Suite

    2400

    Portland, Oregon

    97201-5610

    (503)

    241-2300 rnain

    '

    (503)

    778-5299

    fax

    Dv,/T 2847 24 13v3

    0

    1 05706-00000

    I

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    (1)

    The

    Legislative

    Assembly

    finds

    that

    there

    is

    a

    social

    and

    economic

    need

    to

    insure an

    adequate

    supply

    of

    affordable

    housing

    for Oregonians.

    The

    Legislative

    Assembly

    also

    finds

    that

    the

    imposition

    of

    general

    restrictions

    on housing

    rents

    will

    disrupt

    an

    orderly

    housing market,

    increase

    deferred

    maintenance

    of existing

    housing

    stock,

    lead

    to

    abandonment

    of existing

    rental

    units

    and

    create

    a

    property

    tax

    shift

    from

    rental-owned

    to owner-occupied

    housing.

    Therefore,

    the

    Legislative

    Assembly

    declares

    that

    the

    imposition

    of

    rent

    control

    on

    housing

    in the State

    of

    Oregon

    is

    a

    matter

    of

    statewide

    concern.

    (2)

    Except

    as

    provided

    in subsections

    (3)

    to

    (5)

    of

    this

    section,

    a

    city

    or

    county

    shall

    not

    enact

    any

    ordinance

    or

    resolution

    which

    controls

    the

    rent

    that

    may

    be

    charged

    r

    the

    rent(tl

    of any

    dwelling

    unit.

    (3)

    This

    section

    does

    not

    impair the

    right

    of

    any

    state

    agency,

    cit ,

    county

    or

    urban

    renewal

    agency

    as defined

    by

    ORS

    457

    '035

    to

    reserve

    to

    itselfthe

    right

    to

    approve

    rent increases,

    establish

    base

    rents

    or establish

    limitations

    on

    rents

    on

    any

    residential

    property

    for

    which

    it has

    entered

    into a contract

    under

    which

    certain

    benefits

    are applied

    to the

    property for the

    expressed

    putpose

    of

    providing

    reduced

    rents

    for

    low

    income

    tenants.

    Such

    benefits

    include,

    but

    are

    not

    limited

    to,

    properly tax

    exemptions,

    long-tetm

    financing,

    rent subsidies,

    code

    enforcement

    procedures and

    zoning

    density

    bonuses.

    (4)

    Cities

    and

    counties

    are

    not

    prohibited

    from

    including

    in

    condominium

    conversion

    ordinances

    a

    requirement

    that,

    during

    the

    notification

    period

    specified

    in

    ORS

    100.305,

    the owner

    or

    developer

    may

    not

    raise

    the

    rents

    of

    any

    affected

    tenant

    except

    by

    an

    amount

    established

    by

    ordinance

    that

    does

    not exceed

    the

    limit

    imposed

    by

    ORS

    90.493.

    (5)

    Cities,

    counties

    and

    state

    agencies

    may

    impose

    temporary

    rent

    controls

    when

    a

    natural

    or

    man-made

    disaster

    that

    materially

    eliminates

    a

    significant

    portion

    of

    the

    rental

    housing

    supply

    occurs,

    but

    must

    remove

    the

    controls

    when

    the

    rental

    housing

    supply

    is

    restored

    to

    substantially

    normal

    levels.

    (6)

    As used

    in this

    section,

    "dwelling

    unit"

    and

    "rent"

    have

    the

    meaning

    given

    those

    terms

    in ORS

    90.100.

    Page 3

    -

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    DAVIS

    WRIGHT

    TREMAINE

    LLP

    1300 S.W.

    Fifth Avenue,

    Suite

    2400

    Portland,

    Oregon

    9720

    -5610

    (503) 241-2300

    main'

    (503)

    178-5299

    fax

    DWT

    284724

    l3v3 01

    05706-00000

    I

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    (7)

    This

    section

    is applicable

    throughout

    this

    state

    and

    in all cities

    and counties

    therein.

    The electors

    ot the

    governing

    body

    of a city

    or county

    shall

    not

    enact,

    and

    the

    governing body

    shall

    not

    enforce,

    any ordinance,

    resolulion

    or

    other

    regulation

    that is

    inconsistent

    with

    this section.

    ORS

    91 .225

    (emphasis

    added).

    By

    its

    plain

    text,

    ORS

    9l .225

    unambiguously

    preempts any

    local

    enactment

    that

    controls

    the

    rent that

    may

    be charged

    for the

    rental

    of

    any

    dwelling

    unit,

    subject

    to

    several

    nalrow

    exceptions

    not implicated

    in this

    case.

    Together

    with

    the

    Residential

    Landlord

    and

    Tenant

    Act,

    ORS

    chapter

    90,

    the

    purpose of

    ORS

    91

    .225

    was to

    avoid

    a

    patchwork of

    harmful

    and

    conflicting

    local laws,

    As

    part

    of

    this

    system,

    the

    legislature

    adopted

    a statewide

    rent

    increase

    notice

    period. ORS

    90.220

    provides:

    (7)

    except

    as

    otherwise

    provided

    by

    this

    chapter: (a)

    *

    * *

    Rent may not

    be increased

    without

    a

    30-day

    written

    notice

    thereof

    in

    the

    case

    of a

    month-to-month

    tenancy

    *

    tr'

    *'

    This

    3O-day

    notice

    period reflects

    the

    legislature's

    careful

    balancing

    of

    the

    interests

    of tenants,

    the

    rights

    of

    landlords,

    and

    the

    risks of

    interfering

    with

    the

    efficient

    functioning

    of the

    residential

    rental

    market.

    B.

    The Ordinance

    regulates

    residential

    property

    rental

    price

    increases.

    Despite the

    state

    legislature's

    deliberate

    choice

    of a

    3O-day

    notice

    period, the

    Portland

    City

    Council

    decided

    that

    Portland

    renters

    need

    more advance

    notice

    of

    rental

    increases

    than

    the

    state

    law

    minimum

    notice

    of

    30 days,

    due

    to [r]ecord

    high

    rents.

    Ordinance

    No.

    187380'

    Accordingly,

    on

    October

    14,2015,the

    Portland

    City

    Council

    added

    the

    Ordinance

    to the

    Portland

    City

    Code.

    Id. The Ordinance

    states,

    in

    relevant

    part:

    A.

    In

    addition

    to

    the

    protections

    set

    forth

    in

    the

    Residential

    Landlord

    and

    Tenant

    Act,

    the

    following

    additional

    protections apply

    to

    Tenants

    that

    have

    a

    Rental

    Agreement

    for

    Premises

    covered by

    the

    Act.

    *****

    Page

    4

    -

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    DAVIS

    WRIGHT

    TREMAINE

    LLP

    DWT

    28472413v3

    0105706-000001

    1300 S W

    Fifth

    Avenue,

    Suite 2400

    Portland,

    Oregon

    97201-5610

    (503)

    241

    -2300

    main

    '

    (503) 778'5299

    fax

  • 7/25/2019 Melcliff Associates v City of Portland - Plaintiffs Motion for Summary Judgment

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    C.

    A

    Landlord

    may

    not increase

    a

    Tenant's

    Rent or

    Associated

    Housing

    Costs

    by

    5

    percent or more over

    a

    12

    month

    period

    unless

    the

    Landlord

    gives

    notice

    in

    writing

    to each

    affected

    Tenant:

    (a)

    at

    least

    90

    days

    prior

    to the

    effective

    date

    of the

    rent

    increase;

    or

    (b)

    the

    time

    period

    designated

    in the

    Rental

    Agreement,

    whichever

    is

    longer.

    Such

    notice must specify the amount

    of

    the increase'

    the

    amount

    of the

    new

    Rent or

    Associated

    Housing

    Costs and

    the

    date,

    as

    calculated

    under

    the

    Act,

    when

    the

    increase

    becomes

    effective.

    Portland

    City

    Code Section

    30.01.085.

    Subsection

    D. of

    the

    Ordinance

    imposes

    stringent

    penalties for

    violation

    of

    the

    notice

    requirement,

    including

    fines

    of

    up

    to

    three

    months

    Rent

    as

    well

    as

    actual

    damages,

    reasonable

    attorney

    fees and

    costs

    for each

    affected

    tenant.

    On

    November

    13, 2015,

    only 30

    days

    after

    its enactment,

    the 90-day

    notice

    period

    took

    effect.

    C.

    Plaintiff

    challenges

    the

    Ordinance's

    regulation

    of

    rental

    price

    increases

    Plaintift

    Melcliff

    Associates,

    LLC,

    is

    an

    Oregon

    Limited

    Liability Company.

    Declaration

    of

    Timothy

    Gray

    in

    Support

    of

    Plaintifls

    Motion

    for

    Summary

    Judgment

    ( Gray

    Decl. ),

    fl3.

    Plaintiff

    owns

    multi-family

    residential

    property

    within

    the

    City of

    Portland,

    which

    it

    leases

    out

    under

    Rental

    Agreements

    governed

    by

    the

    Residential

    Landlord

    and

    Tenant

    Act, ORS

    chapter

    90.

    Gray

    Decl.,

    tj4.

    Plaintiff

    has entered

    Rental

    Agreements

    that

    allow

    rent increases

    with

    30

    days'notice

    in accordance

    with

    ORS 90.220.

    Gray

    Decl.,

    fl5.

    Plaintiff

    is adversely

    affected

    by

    the enactment

    and

    enforcement

    of the

    Ordinance,

    which

    prevents

    plaintiff

    from

    adjusting

    rent

    prices

    in accordance

    with

    its Rental

    Agreements

    and

    ORS

    chapter

    90.

    Gray

    Decl',

    T6.

    Plaintiff

    filed this

    lawsuit

    on

    Novemb

    er

    17

    ,2015,

    seeking

    a

    declaration

    that

    the

    Ordinance

    is

    invalid

    and

    unenforceable

    and

    seeking

    a mandatory

    injunction

    petmanently

    enjoining

    the

    City

    from

    enforcing

    the

    Ordinance.

    rfl.

    STANDARI)

    Summary

    judgment

    is appropriate

    where

    the

    pleadings,

    depositions,

    affidavits,

    declarations

    and

    admissions

    on

    file

    show

    that

    there

    is no

    genuine

    issue as

    to

    any

    material

    fact

    Page 5

    -

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    t)w'r

    2s4iz4t3v3 0r05706-00000r

    J'3

    #ill;i,?y*ll:ii '

    Potland,

    Oregon

    97201-561

    0

    (503)

    241'2300

    main '

    (503)

    '778-5299

    fax

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    and

    that

    the

    moving

    party

    is entitled

    to

    prevail

    as

    a matter

    of

    law.

    ORCP

    47 C.

    No

    genuine

    issue

    as to a

    material

    fact

    exists

    if,

    based

    upon the

    record

    before

    the

    court viewed

    in

    a

    manner

    most

    favorable

    to the

    adverse

    party, no objectively

    reasonable

    juror

    could

    retum

    a

    verdict

    for the

    adverse

    party.

    ORCP

    47

    C;Jones

    v. General

    Motors

    Corp.,325 Or

    404,407

    (1997).

    If

    the

    party

    moving

    for summary

    judgment

    has

    produced enough

    evidence

    to

    establish

    the absence

    of

    a

    genuine issue as

    to

    any

    material

    fact, the

    adverse

    parly

    must

    demonstrate

    that

    it has

    sufficient

    evidence

    to entitle

    it

    to

    a

    jury

    determination.

    Estes

    v.

    Lewis

    and

    Clark

    College,l52

    Ot

    App 372,

    383

    (1ee8).

    IV.

    ARGUMENT

    A.

    Plaintiff

    has

    standing

    to

    seek

    declaratory

    and

    injunctive relief

    As

    an initial

    matter,

    plaintiff has standing

    to challenge

    the validity

    of

    the

    Ordinance'

    1.

    Plaintiff

    has

    standing

    to

    pursue

    declaratory

    relief

    pursuant

    to

    the

    .

    uniform

    Declaratory

    Judgments

    Act

    ( DJA ),

    ORS

    28.010

    to

    28.160.

    Plaintiff

    has standing

    because

    its

    legal rights

    are

    currently

    affected

    by the

    Ordinance.

    Standing

    is

    a

    concept

    that

    identifies

    whether

    a

    party

    to

    a

    legal

    proceeding

    possesses a

    status

    or

    qualification necessary

    for

    the

    assertion,

    enforcement,

    or

    adjudication

    of

    legal

    rights

    or

    duties'

    Kellas

    v. Dept.

    of Corrections,34I

    Or

    471,476-77

    (2006).

    Whether

    a

    particular

    plaintiff

    has

    standing

    depends

    on

    the

    particular requirements

    of

    the statute

    under

    which

    he or

    she

    is seeking

    relief.

    Morganv.

    Sisters

    School

    Dist. No.

    6,353

    Or

    189,

    194

    (2013).

    Accordingly,

    because

    plaintiff

    seeks

    declaratory

    relief

    under

    the

    DJA,

    the

    statutory

    provisions of

    the

    DJA

    govern

    whether

    plaintiff has standing.

    The

    DJA

    provides:

    Any

    person interested

    under a

    deed,

    will,

    written

    contract

    or

    other

    wriiig

    constituting

    a

    contract, or whose

    rights,

    status

    or other

    legal

    rlations

    are

    ffected

    by

    a

    constitution,

    statute,

    municipal

    ch-arter,

    ordinance,

    contract

    or

    franchise

    may

    have

    determined

    any

    question

    of construction

    or

    validity

    alislng

    under

    any

    such

    instrument,

    constitution,

    statute,

    municipal

    charter,

    ordinance,

    contract

    or

    franchise

    and obtain

    a

    declaration

    ofrights,

    status

    or

    other

    legal

    relations

    thereunder.

    Page6

    -

    PLAINTIFF'S

    MOTION

    FOR SUMMARY

    ruDGMENT

    DAVIS

    WRIGHT

    TREMAINE

    LLP

    DWT

    28472413v3

    0105706-000001

    1300 S.W

    Fifth

    Avenue, Suite

    2400

    Potland,

    Oregon

    97201-5610

    (503)

    241

    -2300

    rrain

    '

    (503)

    7'8-5299 fax

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    contingent

    or hypothetical

    events

    .

    Morgan,

    353

    Or at

    196.

    Third,

    declaring

    the

    Ordinance

    invalid

    will

    redress

    the

    injury

    that

    is the subject

    of the

    declaratory

    judgment

    action,

    as

    plaintiff

    will

    be able

    to

    avoid

    further financial

    impediments

    by

    modifying

    rent

    prices

    in accordance

    with

    state

    law.

    Morgan,353

    Or

    at

    191.

    Because

    the

    Ordinance

    directly

    affects

    plaintiffls

    rights,

    status

    or

    other

    legal

    relations,

    a

    declaration

    in

    plaintiff

    s favor

    would

    have an

    immediate

    effect

    on

    plaintiff

    s

    legal

    interests,

    and

    plaintiff has

    standing

    to

    seek

    declaratory

    relief

    pursuant to

    ORS

    28.020.

    2.

    Plaintiff also

    has standing

    to

    seek

    injunctive

    relief.

    Because

    plaintiff has

    standing

    to

    pursue a claim

    for

    declaratory

    relief,

    it

    follows

    that

    plaintiff

    also has

    standing

    to

    seek

    injunctive

    relief.

    Although

    no

    statute govelrrs

    the

    issue

    of

    standing

    to seek

    injunctive

    relief,

    the

    Oregon

    Supreme

    Court

    has

    long

    applied

    essentially

    the

    same

    standing

    requirements

    that

    ordinarily

    apply

    in

    declaratory

    judgment

    actions.

    Nordbye

    v.

    BRCP/GM

    Ellington,2Tl

    Or

    App

    168,

    177

    (2015). In

    fact,

    as

    the

    Oregon

    Supreme

    Court

    has

    noted,

    in a

    number

    of

    cases

    addressing

    the

    standing

    requirements

    under

    the

    DJA

    where

    plaintif

    sought

    both

    declaratory

    and

    injunctive

    relief,

    the

    court

    did

    not distinguish

    between

    the forms

    of

    relief

    in assessing

    the

    issue

    of standing

    .

    Morgou 353

    Or

    at20l

    (citing

    Hazell

    v.

    Brown,352

    Or

    455

    ,

    467

    -6g (2012);

    League

    of oregon

    cities

    v. state,

    334

    Or 645

    ,

    657

    -62

    (2002);

    Barcik

    v.

    Kubiaczyk,32l

    Or ll4,l7g

    (1995)).

    Thus,

    in

    light

    of

    the

    fact

    that

    the same

    standing

    standards

    apply

    to

    fplaintiff

    s]

    request

    for declaratory

    relief

    and

    injunctive

    relief,

    plaintiff has

    standing

    to

    seek

    injunctive

    relief

    for

    the

    same

    reasons

    that

    plaintiff

    has

    standing

    to

    seek

    declaratory

    relief'

    Morgan,

    353

    Or at

    201-02.

    B.

    The

    Ordinance

    is

    a

    rent

    control

    on

    housing

    preempted

    by ORS

    91.225.

    Plaintiff

    is

    entitled

    to

    a

    declaration

    that the Ordinance is

    invalid

    and

    unenforceable

    because

    ORS

    91

    .225

    pteempts

    the

    Ordinance

    as

    a

    matter

    of

    law.

    il

    il

    Page

    8

    -

    PLAINTIFF'S

    MOTION

    FOR SUMMARY

    JUDGMENT

    ,t)wr

    2s4j24t3v3

    0r05706-00000r

    J'3

    Hil,Ii.|.y*il3i'|o'

    Portland,

    Oregon

    97201-510

    (503)

    241-2300

    nrain'(503)

    778-5299 fax

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    l. Substantive

    state statutes

    preempt incompatible

    local enactments.

    When

    a

    local

    enactment

    is found incompatible

    with

    a state

    law

    in

    an

    aea

    of substantive

    policy,

    the

    state

    law

    will

    displace

    the

    local

    rule. City of

    La Grande

    v. Public

    Employees

    Retirement

    Bd.,28I Or

    137,I49

    (1978).

    Although

    courts

    should interpret

    local

    enactments,

    if

    possible,

    to be

    intended to

    function

    consistently

    with

    state

    laws,

    local enactments

    must

    yield

    to

    legislative

    policy

    where

    both

    cannot

    operate

    concurrently

    or where

    the legislature

    meant

    its

    law to be

    exclusive.

    Id. at

    148.

    Thus,

    a

    statute

    expressly

    preempts

    a

    local

    rule where

    the

    text,

    context,

    and

    legislative

    history

    of

    the

    statute

    unambiguously

    expresses

    an

    intention

    to

    preclude

    local

    govemments from regulating

    in

    the

    same

    area as

    that

    govemed

    by

    the

    statute.

    Rogue

    Valley

    Sewer Servs.

    v.

    City

    of

    Phoenix,357

    Or

    437

    ,

    450-51

    (2015).

    The legislature may

    express

    its unambiguous

    intent

    without

    using the

    word

    'preempt'

    itself

    if

    it

    uses

    equally

    clear

    terms,

    such

    as

    no local

    authority

    shall

    enact

    any

    ordinances,

    rules or

    regulations

    in conflict

    with

    the

    provisions

    hereof.

    1d

    (quoting

    ORS

    461.030(l)).

    Where

    statutes

    unambiguously

    preempt local

    enactments,

    a naffowing

    construction

    of

    state

    law to

    avoid

    preemptive

    effect

    is

    not

    permissible .

    Homebuilders

    Ass'n of

    Metropolitan

    Portland

    v.

    Metro,250

    Or

    App 437,

    443

    (2012).

    Instead,

    the

    application

    of

    the

    statute

    to

    a

    particular local

    enactment

    is

    a

    question

    of

    statutory

    construction

    resolved

    by

    resort

    to the

    familiar

    methodology

    set

    forth

    in State

    v.

    Gaines,346

    Ot

    160,

    771

    (2009).

    1d

    When

    interpreting

    a statute

    under

    this

    methodology,

    courts begin

    by

    examining

    the

    text

    and context

    of

    the

    statute

    and

    then

    consider

    any

    legislative

    history

    proffered by

    the

    parties.

    State

    v.

    Gaines,346

    Or 160,

    171-72

    (2009).

    If

    the

    legislature's

    intent

    remains unclear

    after

    examining

    text,

    context,

    and

    legislative

    history,

    the

    court

    may

    resort to

    general

    maxims

    of

    statutory

    construction

    to

    aid

    in

    resolving

    the

    remaining

    uncertainty.

    Id.

    2.

    The

    plain

    text

    of

    ORS

    91.225

    shows

    that

    it preempts the

    Ordinance.

    ORS

    91

    .225

    unambiguously

    preempts local enactments

    like

    Portland's

    ordinance.

    The

    statute

    begins

    by

    listing

    the dangers

    posed

    by

    the imposition

    of

    general restrictions

    on

    housing

    Page 9

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    MOTION

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    SUMMARY

    JUDGMENT

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    are we here?

    We

    are

    here because

    of a

    financial emergency.

    And

    therefore,

    we ought

    to

    focus

    on the

    financial

    question. And we're trying

    to

    avoid

    harm

    to

    our citizens

    by

    extraordinary

    rent

    increases,

    at

    a

    time

    where they

    have

    few

    other choices,

    so

    I

    am

    pleased

    to

    hear that

    we

    think that

    that's both a

    sound

    policy

    basis

    and

    focusing

    on

    the

    heart of

    problem. Id.

    However,

    the

    purporled

    reasonableness

    of a

    local

    enactment

    that controls

    rent

    increases,

    even

    for

    90 days,

    cannot

    save

    it

    from

    preemption.

    ORS

    91 .225

    is not

    limited

    by

    subjective

    reasonableness

    of

    an ordinance

    (e.g.

    only

    a little

    rent

    control);

    it

    expressly

    preempts

    any

    ordinance

    or

    resolution

    which

    controls

    the

    rent that

    may

    be

    charged

    * * *.'r

    ORS 91.225

    (emphasis

    added).

    Reading a

    reasonableness

    safe

    harbor into

    the

    statute

    would

    impermissibly

    adopt

    a narrowing

    construction

    of

    state

    law

    to

    avoid preemptive

    effect

    and

    would

    subvert

    the

    intent

    of the

    legislature.

    Homebuilders

    Ass'n,250

    Or

    App at

    443

    .

    Defying

    the

    will

    of

    the

    legislature

    is not defensible

    and

    potentially

    legal.

    The

    plain

    text

    of

    ORS

    91.225

    establishes

    that

    local

    govemments have

    no

    power

    to

    regulate

    rent

    increases-there

    is

    simply

    no

    needle

    for

    the

    Council

    to

    thread

    here.

    3.

    The

    legislative

    history

    of

    ORS

    91.225

    further shows

    that

    the

    legislaiure

    intended

    to

    preempt local

    enactments

    like

    the

    Ordinance.

    If

    the

    statue's

    text

    left any

    conceivable

    doubt

    as

    to

    the

    legislature's

    intent, the

    legislative

    history dispels

    it. ORS 91.225

    was adopted

    by

    the

    1985

    legislative

    assembly

    as

    Chapter

    335,

    Oregon

    Laws

    1985

    (Enrolled

    H.B.

    2505).

    See

    Exhibit

    1.

    ORS

    91.225(2)

    is identical

    to

    that

    which

    was contained

    in the

    enrolled

    House

    Bill and

    the

    Bill

    as

    originally

    introduced,

    which

    is

    attached

    as Exhibit

    2. The

    amendment,

    ultimately

    adopted

    by the

    House

    is attached

    as

    Exhibit

    3

    On

    April 30,

    1985, the

    House

    Committee

    on the Judiciary

    held

    a

    hearing

    on the

    bill

    as

    introduced.

    Among

    those

    testiffing

    as

    proponents was Charlie

    Hales,

    who, at

    the

    time

    represented

    the

    Home

    Builders

    Association

    Metropolitan

    Portland.

    During

    that

    hearing,

    Mr.

    Hales

    spoke

    of

    the

    need for total

    statewide

    permanent

    preemption

    with

    respect

    to

    rent regulation

    il

    Page

    13

    -

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    DAVIS WRIGHT

    TREMAINE

    LLP

    DWT

    28472413v3

    0105706-000001

    1300 S W

    Fifth

    Avenue,

    Suite 2400

    Portland,

    Oregon

    97201-5610

    (503)

    241-2300

    nrain

    '

    (503)

    '778-5299

    fax

    l0

    1l

    12

    13

    t4

    l5

    16

    t7

    18

    19

    20

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    Because

    the

    Ordinance

    is

    invalid

    and

    unenforceable,

    plaintiff

    is entitled

    to

    a

    permanent

    injunction.

    A

    party

    is entitled

    to

    injunctive

    relief

    where

    there

    is

    an appreciable

    threat

    of continuing

    harm,

    Eagles

    Five,

    LLC

    v.

    Lawton,250

    Or

    App

    413,

    422

    (2012),

    and

    the

    harm

    is

    irreparable,

    i.e.,thercmust

    be

    no

    adequate

    remedy

    at

    law,

    Levasseur

    v.

    Armon,240

    Or

    pp250,259

    (2010).

    Further,

    aparty

    has

    standing

    to enjoin

    a

    goverrmental

    action

    where,

    as here,

    the

    challenged

    action

    injures

    the

    plaintiff in

    some

    special

    sense

    that

    goes

    beyond

    the

    injury

    the

    plaintiff

    would

    expect

    as

    a

    member

    of

    the

    general

    public. Eckles

    v.

    State,306

    Or

    380,

    386

    (1988).

    Finally,

    pursuant to

    ORS

    28.080,

    a

    court

    may

    grant

    othet

    forms

    of

    coercive

    relief,

    including

    injunctive

    relief'

    when

    based

    on

    a declaratory

    judgment

    and

    when necessary

    and

    proper.

    Ken Leahy

    Constr.,

    Inc.

    v.

    Cascade

    Gen.,

    Lnc.,329

    Or

    566,575

    (1999).

    Here,

    plaintifls entitlement

    to

    injunctive

    relief

    is beyond

    dispute.

    Plaintiff

    has

    a

    right

    to

    the

    possession,

    use, and

    enjoyment

    of its

    property.

    Hall

    v. State

    ex

    rel

    Oregon

    Dep't

    of

    Transp',

    355

    Or

    503,

    51

    |

    (2014)

    (property

    owner

    has

    right

    of

    possession,

    enjoyment,

    and

    use );

    Nearing

    v,

    l4/eaver,295

    Or

    702,707

    (19S3)

    (property

    owner

    has

    legally

    protected

    interest in

    the

    use and

    enjoyment

    of

    their

    land).

    Plaintiff

    seeks

    the

    ability

    to

    manage

    its own

    property in

    response

    to

    market

    forces

    and

    subject

    to

    state

    law.

    That is unquestionably

    a

    lawful

    pursuit,

    but for

    the

    Ordinance

    Even

    though

    the

    Ordinance

    is

    invalid,

    the threat

    of

    its

    enforcement

    interferes

    with

    plaintiff

    s use

    of

    its

    property,

    constitutingper

    se

    irreparable

    harm.

    Indeed,

    the

    principle

    that

    an

    injunction

    is

    a

    property

    remedy

    against

    enforcement

    of an

    invalid

    law

    goes

    back

    at least

    a

    century

    and

    remains

    well-established.

    Northwestern

    Title

    Loans,

    LLC

    v,

    Division

    of

    Finance

    and

    Corporate

    Securities,lS0

    Or

    App

    I

    ,8

    (2002)

    (citing

    Alum.

    IJtensil

    Co.

    v. City

    of

    North

    Bend,

    210

    Or

    472,419

    (1957)

    and

    the

    cases

    collected

    therein

    dating

    back to

    1905

    (if

    the threatened

    DAVIS

    WRIGHT

    TREMAINE

    LLP

    1300

    S.W.

    Fifth

    Avenue, Suite

    2400

    Portland, Oregon

    97201-5610

    (503)

    241-2300

    rnain'(503)

    7'78-5299

    fax

    C

    Page

    15

    -

    PLAINTIFF'S

    MOTION

    FOR

    SUMMARY

    JUDGMENT

    DWT

    284724

    13v3

    0

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    I

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    2

    J

    4

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    enforcement

    of

    an allegedly

    invalid

    ordinance

    or

    statute

    may

    harm

    the

    property

    rights

    of

    a

    party,

    the court

    has authority

    to

    issue

    an

    injunction

    to

    prevent the

    threatened

    harm

    from

    occurring.) )'

    Moreover,

    under

    ORS

    23.080,

    further

    relief

    may

    be

    granted

    whenever

    necessary

    or

    proper, and

    such

    further

    relief'

    may

    include

    injunctive

    relief.

    See

    Ken

    Leahy

    Constr.,

    Inc.,

    329

    Or

    at

    575.

    Here,

    injunctive

    relief

    is

    necessary

    and

    propet because

    an

    injunction

    is

    necessary

    to

    effectuate

    the

    declaration

    that

    Ordinance

    is invalid

    and

    to

    give

    plaintiff complete

    relief.

    see

    id.

    at

    572,

    57

    5-7

    6

    ( We

    need

    not

    decide

    whether

    proof

    of

    all

    the

    equitable

    elements

    of

    an

    injunction

    is

    a

    prerequisite

    in

    every

    case

    seeking

    injunctive

    relief

    under

    ORS

    28.080

    *

    * *

    fbecause

    the

    injunction]

    here

    was

    designed

    to

    provide the

    kind

    of

    complete

    relief

    to

    plaintiff

    in

    the manner contemplated

    by

    ORS 28.080

    *

    {